Pakistan has officially opened its new virtual asset licensing system, allowing crypto businesses to apply for regulatory approval under the Virtual Assets Act, 2026.

The Pakistan Virtual Asset Regulatory Authority (PVARA) is now accepting applications for regulatory sandbox participation, No Objection Certificates (NOCs), and full Virtual Asset Service Provider (VASP) licenses.

Under the new framework, businesses must obtain the required regulatory approval before providing virtual asset services in Pakistan.

Existing virtual asset service providers that were operating on or before March 5, 2026, have been given until September 5, 2026, to apply for an NOC under Section 70 of the Virtual Assets Act, 2026. Firms that fail to apply by the deadline must stop their operations.

The licensing regime covers a broad range of crypto-related activities, including advisory services, brokerage, custody, exchanges, lending and borrowing, derivatives, asset management, transfers and settlement.

It also covers the issuance of asset-referenced and fiat-referenced tokens, as well as certain virtual asset services linked to mining.

Businesses seeking a full VASP license will have to meet several regulatory requirements. These include incorporation as a company in Pakistan, meeting minimum paid-up capital requirements, passing fit-and-proper tests for directors and key officials, and establishing anti-money laundering and counter-terrorism financing systems.

Applicants must also demonstrate adequate cybersecurity protections and business continuity arrangements.

The framework offers two main routes to a full license. Companies developing innovative virtual asset products can first apply to enter the regulatory sandbox, where their products can be tested under controlled conditions before seeking a full license.

Existing operators can instead use the NOC route, which involves preliminary approval, meeting regulatory requirements, incorporating locally, and then applying for a full VASP license.